Last updated: May 6, 2025

5 minute method

In this strategy, we will be focusing on the EURUSD pair in a 5 minute timeframe. Here are the indicators in this system.

• MACD: 12,26,1 (1 means nothing)
• Stochastic: 5, 3, 3
• EMA 5 to the close
• EMA 5 to the open

Note:

• No trades during news times*
• Risk is set to 1%*
• Take profit is random based on market conditions but it is advisable to exit based on the reversal patterns or a cross of the 2 EMAs.
• Trade signals are only confirmed on closed candle bars.

For BUY signal

• When the stochastic crosses up from the 20 line and is not ovebought;
• The MACD closses higher than the previous time interval;
• The Signal candle bar closes higher bullish;
• The 5 EMA to the close has crossed the 5 EMA to the open;
• Set stop loss in the low of the previous candle or 20 pips but 20 pip min.
• Close when the 5 ema to the close has crossed the 5 ema to the open

For SELL signal

• When the stochastic crosses down from the 80 line and is not oversold;
• The MACD closses lower than the previous time interval;
• The signal candle bar closes lower bearish;
• The EMA 5 to the close has crossed the EMA 5 to the open;
• Set stop loss in the high of the previous candle or 20 pips but 20 pip min.
• Close is based on price action.

Recommended MT4/MT5 Brokers

Trading forex and CFDs carries a significant risk of loss and is not suitable for everyone. Broker links are affiliate links — we may earn a commission at no cost to you.

Forex Strategy Download: